Alqanoni

Franchise Law

Art. 11
Status unknownSaudi ArabiaRegulation

Issued by Ministry of Investment (misa.gov.sa)

1. A franchise agreement shall be drafted in Arabic and signed by the parties; if drafted in another language, a certified Arabic translation shall be provided. 2. In addition to the provisions agreed upon by the parties, a franchise agreement shall include Franchise Law the following: a) The franchised business and its description, as well as the franchise agreement’s term, manner of amendment, and geographical scope. b) Any amounts to be paid by the franchisee to the franchisor, including the initial franchise fee, the expenses for the franchisee’s personnel training, if any, and the technical support, as well as the method for calculating payments made by the franchisee to the franchisor or any of the franchisor’s associates in return for goods or services. c) The parties’ obligations relating to the training of the franchisee’s personnel by the franchisor. d) The franchisor's obligation to provide the franchisee with the technical and marketing expertise, and any other expertise required by the nature of the granted franchise. e) The franchisee's obligation to comply with the instructions and marketing and display methods, and to preserve the identity of the franchise. f) The franchisor's obligations relating to the provision of goods or services to the franchisee, as well as the franchisee’s obligations relating to the receipt of such goods or services from the franchisor, directly or through a third party, in accordance with the franchisor’s instructions. g) The franchisee’s right to use any trademark or any other intellectual property right relating to the franchised business, as well as the liabilities of the parties in case of infringement of intellectual property rights and damages arising therefrom. h) Manner of resolving any dispute arising from the franchise agreement. i) The franchisee’s right to sub-franchise, if any, and the relevant provisions. j) The consequences of any change in the ownership of the franchisee, the franchisor, or the person controlling either party. k) Any other provision provided for by the Regulations.

The Arabic text is the legally binding version. The English translation is provided for guidance only.

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